A Bradford community group has been awarded more than £1 million towards an ambitious project to create an eco-friendly enterprise centre in Eccleshill.

Newlands Community Association has been granted planning permission to build the centre on a three and a half acre brownfield site behind Eccleshill Community Hospital, off Harrogate Road, at a total cost of £3.7m.

Project leaders intend to open the building next spring and their vision came a step closer today when Communities Secretary John Denham announced the group is to receive a grant of £1,037,500.

To secure the money a team, including the Association’s business manager Tony Holdich travelled to London last month. Having submitted a business plan, the group had to make a passionate case to a panel to explain why their project was worthy of attracting the investment.

Twelve projects across the country have been awarded a share of The Communitybuilders Fund.

Mr Denham said: “Local people often have the best ideas and solutions for their local communities. We want to help community groups access the resources they need to put their ideas into practice.”

Mr Holdich said he was excited by the announcement and revealed how the money would be spent.

“The Association is based at The Holybrook Centre, in Eccleshill, which is no longer fit for use. We intend to build an enterprise centre and managed workspaces.

“It will be a strawbale building – the largest strawbale building in Europe. The bales will be filled between the pillars of the building coated with lime render and covered with cedar panels which don’t need varnishing or any treatment.

“The walls will be three-feet deep, providing excellent heat and sound insulation. The building will be served by a ground source heat pump to give under-floor heating throughout and a water system which collects rainwater in a reservoir to service toilets and water plants. If all goes to plan work will start in June and this time next spring we’ll get the keys.”

The Holybrook Centre’s existing tenants will be relocated to the centre, including the Snoop project, Mencap, The Play Network, Bradford District Care Trust and Brunel Housing. More than half of the building will be available to new tenants. Discounted rates will be offered to new start-up businesses.

The project has already been backed with £990,000 from Bradford Council’s Kickstart programme and is expecting to receive confirmation shortly on a further £850,000 investment from European Regional Development Fund through Yorkshire Forward, as well as another grant from a separate funding stream. Mr Holdich said the new funding freed up money to re-establish Newlands Furniture Service after an arson attack on its showroom in Rockwell Lane, Thorpe Edge, last month.

He added: “We’re working very closely to get it back on track and intend to replace the ruined cabin with a brand new facility.”